Alright. So there's not much more details we need to go on here, but let's go ahead and review this just so we have it all in one place. Government purchases spending on goods and services by who? By the government. Right? Local, state, and federal government. They're the ones who make the government purchases. Pretty straightforward. And remember, just to reiterate that this does not include transfer payments. So when the government transfers money to other citizens, so through, let's say, a welfare check or an unemployment check, that does not get included in GDP. It gets included when that gets spent on consumption, right? So the money when it gets received by the households, they're going to spend it on goods and services and then it'll be included in the consumption category, not in the government purchases category. The welfare check itself does not result in production. Only when it gets spent on the final goods and services does it result in production. So again, net exports, exports minus imports. Right? Exports minus imports. And remember that this could be it could be positive or negative. If the imports are greater than exports, well, we're gonna have a negative number there, right? If we've got a trade deficit in that case, if the imports are greater than exports. So exports remind me again, goods produced where? Are they produced here or abroad? Exports are goods that are produced here but sold abroad, right? They're sold in other countries. And what about imports? Those are goods sold abroad Goods that are produced abroad in other countries but sold here, right? Those are imports. Cool? So remember, those are the four sections of our GDP. Again, GDP equals consumption plus investment plus government purchases plus net exports, okay? There we go. There we have it. A little more detail on the different sections of GDP. The main thing I want you to remember here is, this formula for GDP:
GDP = Consumption + Investment + Government P Purchases + Net Exports
What is included through the expenditure approach?
Let's pause here and move on to the next topic.